Canadian Commercial Bank (CCB) was a bank based in Edmonton, Alberta, Canada, which failed in 1985. It received its parliamentary charter in 1975 and established its head office in Edmonton.[2] The bank was privately owned and operated as a wholesale commercial bank.
| Formerly | Canadian Commercial and Industrial Bank (until 1981)[1] |
|---|---|
| Company type | Private |
| Industry | Bank |
| Founded | July 6, 1976 |
| Founder | G. Howard Eaton |
| Defunct | September 3, 1985 |
| Fate | Bank failure |
| Headquarters | , |
Area served | Western Canada |
History
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The Canadian Commercial Bank officially began operations in July 1976, with CDN$22 million of capital. From 1976 to 1982, it operated profitably—usually in the top quartile of Canadian banking. It built a new headquarters in Edmonton, the Canadian Commercial Bank Tower in 1982.
In early 1985, after investing heavily in real estate and energy sector companies, the bank became insolvent during a period of rising interest rates and a falling Canadian dollar.[3] The federal government arranged a $255 million bailout ($0.64 billion today) in an effort to keep the failing institution afloat.[4] In spite of this, the bank ceased operations on September 3, 1985.[5] It was the largest bank failure in Canadian history and the first in Canada in 60 years, though followed shortly that year by the failure of the Northland Bank.
Following the failures, the government weathered calls for the resignation of the governor of the Central Bank, Gerald Bouey.[6] The failures of both banks were the subject of a Commission of Inquiry headed by Supreme Court of Canada Justice Willard Estey, who issued his report in 1986.[7][8]
See also
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References
edit- ^ Marsh, James, ed. (1999). The Canadian Encyclopedia. p. 369. ISBN 9780771020995. Retrieved April 26, 2020.
- ^ "Canadian Commercial Bank". thecanadianencyclopedia.ca.
- ^ "HSBC saved a small Canadian bank once, but it won't be coming to Home Capital's rescue". Financial Post. Bloomberg News. May 19, 2017. Archived from the original on May 15, 2018.
- ^ "Canada Moves to Bail Out Troubled Bank". Los Angeles Times. Associated Press. March 26, 1985. Archived from the original on April 26, 2020. Retrieved April 26, 2020.
- ^ George J. Murphy (1993). A History of Canadian Accounting Thought and Practice. Taylor & Francis. p. 507. ISBN 978-0-8153-1248-2.
- ^ Whittington, Les (October 25, 1985). "Canada Banks Facing Crisis In Confidence". Washington Post. Archived from the original on July 3, 2018. Retrieved April 26, 2020.
- ^ Estey, Willard (August 1986). Report of the Inquiry into the Collapse of the CCB and Northland Bank (Report). Canada: Privy Council Office. ISBN 0-660-12171-9. Retrieved December 18, 2015.
- ^ Martin, Douglas (October 4, 1985). "Troubles at Canadian Banks". New York Times. p. D1.
Further reading
edit- Canadian Commercial Bank Financial Assistance Act [1985, c. 9]
- Dingle, James F. (2003). "The Bank Failures of September 1985" (PDF). Planning an Evolution: The Story of the Canadian Payments Association, 1980–2002. Bank of Canada, Canadian Payments Association. ISBN 0-662-67377-8.
- Johnson, Arthur (1986). Breaking the banks. Toronto: Lester & O. Dennys Publishers. ISBN 978-0-88619-072-9.
